IT industry cuts 20,155 jobs in January, telecom sector a major drag
Data released by CompTIA on Wednesday showed that the IT industry laid off 20,155 people in January, with telecom being the main cause; the tech unemployment rate rose to 3.6%, but job postings increased to over 465,000, showing cyclical fluctuations.
Brief Overview
- Tech industry hiring contracted in January as employers navigate an uncertain economic environment, according to data released Wednesday by IT training and certification body CompTIA. The report is based on data from the U.S. Bureau of Labor Statistics.
- The IT industry saw a net loss of 20,155 jobs in January, dragged down mainly by layoffs in the telecommunications sector. Across the broader economy, tech jobs were estimated to decline by about 2,000.
- The unemployment rate for tech workers rose slightly to 3.6% during the month, up from 3.3% in December. This runs counter to the national unemployment rate, which fell from 4.4% to 4.3%.
Deeper Analysis
Despite the decline in the data, January figures also align with cyclical hiring patterns. Tech job postings rose 13% month-over-month in January, with total active postings exceeding 465,000.
"This is consistent with patterns seen in previous years, where employers slow hiring at the end of the year and accelerate hiring activity at the start of the new year," CompTIA said. "New tech job postings increased across multiple industries."
Employers and tech job seekers are working to adapt to a complex environment, as companies face market volatility, budget constraints, and shifting priorities driven by AI adoption.
"The U.S. economy at the start of 2026 may leave most people puzzled—the labor market appears soft, yet the stock market keeps hitting record highs. The low-hiring, low-layoff environment persists, and any decline in the unemployment rate is always a welcome signal," Cory Stahle, senior economist at Indeed Hiring Lab, said in an email to CIO Dive.
Tech companies have also conducted high-profile layoffs in recent months. Amazon said it cut 16,000 jobs at the end of January, following 14,000 cuts in October. IBM announced plans in November to lay off thousands of employees to sharpen its focus on software. Home Depot cut 800 jobs last month at its Atlanta support center, mainly in its technology division.
Stahle added: "Faced with ongoing uncertainty, employees may continue to hold onto their current positions. Those who are unemployed will face limited options and a lengthy job search process."